What Is 'Dual Agency' in Business Brokerage—and Why It Matters When Selling Your Business
When it comes time to sell your business, choosing the right business broker can make all the difference in both the process and your final sale price. One important—but often overlooked—factor is the broker’s agency relationship. Specifically, you need to understand the concept of “dual agency” and how it can impact your transaction.
What Is Dual Agency?
Dual agency occurs when a business broker represents both the seller and the buyer in the same transaction. This means that the broker is legally working for two parties with competing interests—on one hand, the seller wants to get the highest possible price, while the buyer wants to pay the lowest reasonable price.
While dual agency is legal in many states (with proper disclosure and consent), it creates a fundamental conflict of interest. After all, how can a broker negotiate the best deal for you when they’re also trying to serve the interests of the other side?
As the Bible says, “You cannot serve two masters.” When push comes to shove, a broker caught in the middle may not be able to advocate as strongly or clearly for either party. In our opinion, this compromises the integrity of the process and potentially puts the seller at a disadvantage.
The Benchmark Business Advisors Approach
At Benchmark Business Advisors, we take a different approach—one that eliminates this conflict from the very beginning. We only represent sellers in all of our transactions. This allows us to focus entirely on the seller’s best interests without compromise, distraction, or divided loyalties.
By working exclusively for the seller, we are free to:
- Set pricing strategies that maximize value for the Seller
- Position your business to attract qualified buyers-not ‘tire-kickers’ or ‘searchfunders’.
- Negotiate terms solely with your goals in mind
- Maintain full confidentiality and control over sensitive business information
We believe that a broker's loyalty should be undivided—and when you choose Benchmark, you can be confident that your interests are our sole priority.
Why It Matters
Selling a business is one of the most important financial transactions most owners will ever undertake. It requires careful preparation, professional marketing, and expert negotiation. You deserve a broker who is fully committed to helping you achieve the best outcome, not one who is trying to “make nice” between two opposing sides.
Before you sign with any business broker, ask how they handle agency relationships. If they routinely engage in dual agency, think carefully about whether that’s in your best interest.
At Benchmark, we don’t believe in compromises when it comes to loyalty. Our clients choose us because they know we stand firmly on their side—every step of the way.
Thinking of Selling Your Business?
Let’s talk! At Benchmark Business Advisors, we offer a free, confidential consultation to help you explore your options and decide if now is the right time to sell. And if you work with us, you’ll know you have a partner who is 100% committed to your success.